The influence of online ratings and reviews on hotel booking consideration

Abstract

This paper analyses the impact of good vs. bad ratings during the first stage of the decision-making process when booking a hotel. This study tested the interaction between numerical ratings given to a product or service and the number of verbal reviews it has received while controlling subject susceptibility to interpersonal influence. The study conducted a full factorial between subjects design of 2 levels of ratings (good vs. bad) x 2 levels of reviews (high vs. low) in a decision-controlled setting. Results suggest an asymmetric interaction between numerical ratings and reviews: When the rating is good, the trust in the rating depends on the number of reviews, but conversely, if the rating is bad, the number of reviews has no effect on how trustworthy the rating is. Academic and managerial implications of this study and scope for future research have also been discussed.